Posts tagged ‘Recession in India’

Global economic meltdown has concerned many countries. People are coming up with their own views as what would be the impact? There are lots of data, statistics given on different forums. Top politicians, businessmen, and media, everybody is talking about it. I looked at different blogs, forums and noticed some interesting debates about impact on India Inc. Here are my thoughts as how India Inc should / will deal with this?
I would prefer to say India Inc 2.0 as I believe India Inc 1.0 got over after Y2K and .Dot doom. India started looking into new business dimensions and its economy grew like anything. So, let’s see how India Inc 2.0 should / will deal with this recent economical crisis.
Majority of Indian IT business derive it’s more than 70% of revenue from US economy and they are bound to hit. They will feel the heat as their clients in US will not go for more projects and more work. What could be the impact? Few Indian companies will go for cost cutting, job cutting, and few will prefer to explore new avenues. This might boost the IT product initiative in India. And if it happens, it would create a better prospect for IT business in India.
Tourism is the other sector which is likely to see the impact of this global recession. Everybody is on cost cutting path and the first thing which comes in mind is to cut the traveling and vacation cost. How the industry should deal with this? Ok, if the scenario is not cooperative enough to motivate people then how about going for some innovative things. Let’s consider some innovative ideas for tourism industry. How about promoting health tourism, spiritual tourism, and cultural tourism? Yoga, Meditation, Ashrams, Gurus, Pundits, Bodhgaya, Hrishikesh, Dharamsala, etc. could be few significant words to consider.
More than 50% of India’s workforce is still employed in Agriculture, a sector which is likely to be untouched. These are the people who are least bothered about what’s happening in urban India or the Global village. They would continue doing their regular work and their lifestyle will remain same. India Inc 2.0 can see this global meltdown as an opportunity to enter Agriculture sector. They can come up with a plan which would help this sector to grow and also to enhance the lifestyle of these people. There are multiple problems in this sector and most of them are because of lack of knowledge / information. Some initiatives have been taken by Government / Private sector companies but this recession could act as a booster for making more such investments. Web 2.0 is another area which can help in combating this recession era. India Inc 2.0 must consider this as an opportunity to build a broader IT enabled business network. Around 10% of Indian population uses Internet and a business model based on recent happenings of Internet can surely create more jobs, more money. It would also help other sectors by providing information / infrastructure to deal with their issues in much better way.
Innovation with technology, Innovation with business model and engaging more people with growth cycle will be crucial for the next business boom. I hope to see a more confident, independent and robust India Inc 3.0.